Correlation Between Datang HuaYin and By Health
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By analyzing existing cross correlation between Datang HuaYin Electric and By health, you can compare the effects of market volatilities on Datang HuaYin and By Health and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Datang HuaYin with a short position of By Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Datang HuaYin and By Health.
Diversification Opportunities for Datang HuaYin and By Health
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Datang and 300146 is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Datang HuaYin Electric and By health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on By health and Datang HuaYin is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Datang HuaYin Electric are associated (or correlated) with By Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of By health has no effect on the direction of Datang HuaYin i.e., Datang HuaYin and By Health go up and down completely randomly.
Pair Corralation between Datang HuaYin and By Health
Assuming the 90 days trading horizon Datang HuaYin Electric is expected to generate 1.18 times more return on investment than By Health. However, Datang HuaYin is 1.18 times more volatile than By health. It trades about -0.01 of its potential returns per unit of risk. By health is currently generating about -0.04 per unit of risk. If you would invest 432.00 in Datang HuaYin Electric on September 4, 2024 and sell it today you would lose (83.00) from holding Datang HuaYin Electric or give up 19.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Datang HuaYin Electric vs. By health
Performance |
| Timeline |
| Datang HuaYin Electric |
| By health |
Datang HuaYin and By Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Datang HuaYin and By Health
The main advantage of trading using opposite Datang HuaYin and By Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Datang HuaYin position performs unexpectedly, By Health can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in By Health will offset losses from the drop in By Health's long position.| Datang HuaYin vs. Industrial and Commercial | Datang HuaYin vs. Agricultural Bank of | Datang HuaYin vs. China Construction Bank | Datang HuaYin vs. Bank of China |
| By Health vs. Biwin Storage Technology | By Health vs. PetroChina Co Ltd | By Health vs. Industrial and Commercial | By Health vs. China Construction Bank |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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